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Definition of the value of information

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Theory of Information and its Value

Abstract

The concept of the value of information , introduced in this chapter, connects Shannon’s information theory with statistical decision theory. In the latter theory, the most basic is the notion of average cost or risk, which characterizes the quality of decisions being made. The value of information can be described as the maximum benefit that can be gained in the process of minimizing the average cost with the help of a given amount of information. Such a definition of the value of information turns out to be related to the formulation and the solution of certain conditional variational problems.

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References

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Author information

Authors and Affiliations

  1. Faculty of Science and Technology, Middlesex University, London, UK

    Roman V. Belavkin

  2. Industrial and Systems Engineering, University of Florida, Gainesville, FL, USA

    Panos M. Pardalos

  3. Electrical & Computer Engineering, University of Florida, Gainesville, FL, USA

    Jose C. Principe

  4. Moscow, Russia

    Ruslan L. Stratonovich

Authors
  1. Roman V. Belavkin
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  2. Panos M. Pardalos
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  3. Jose C. Principe
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  4. Ruslan L. Stratonovich
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Editor information

Editors and Affiliations

  1. Faculty of Science and Technology, Middlesex University, London, UK

    Roman V. Belavkin

  2. Industrial and Systems Engineering, University of Florida, Gainesville, FL, USA

    Panos M. Pardalos

  3. Electrical & Computer Engineering, University of Florida, Gainesville, FL, USA

    Jose C. Principe

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Belavkin, R.V., Pardalos, P.M., Principe, J.C., Stratonovich, R.L. (2020). Definition of the value of information. In: Belavkin, R., Pardalos, P., Principe, J. (eds) Theory of Information and its Value. Springer, Cham. https://doi.org/10.1007/978-3-030-22833-0_9

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